8 most common tax blunders

To get your refund back fast, don’t overlook the obvious

By

JonnelleMarte

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Missing form

Tax season is finally in full swing, following the fiscal-cliff-induced late start. But some filers could see their refunds held up even further if they’re not careful. We consulted tax pros and the Internal Revenue Service to find out which flubs are most likely to cause problems, and what taxpayers can do to avoid them. One common mistake: not including all of the necessary paperwork. Before filing, be sure you have all the schedules and forms you need. (You can find instructions for most tax forms at www.irs.gov, including details on how each form works and what documentation you might need.) Those requesting a payment agreement also have to attach Form 9465. And don’t forget to make copies for your personal records, whether you’re shipping your return electronically or through the mail. — By Jonnelle Marte.

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Misspelled name

While you’re not likely to forget your own name, not entering it exactly as it appears on your Social Security card could result in the IRS sending back your tax return. Pay particular attention to your middle name or middle initial (or lack thereof), and make sure your Social Security card reflects any recent name changes (contact the Social Security Administration at SSA.gov if it doesn’t). The Social Security number you enter should likewise, of course, match the number on your card.

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Wrong filing status

Roughly 67,000 taxpayers chose the wrong filing status in 2010, up 38% from 2009, according to the most recent data available from the IRS. Tax filers are most often confused by the head-of-household status, which has three main requirements: You must be unmarried on the last day of the year, you must have paid more than half the costs of keeping up a home for the year and you must have lived with a qualifying person for more than half of the year. The qualifying person doesn’t have to actually live with you if he or she is a dependent parent. (Find more details on filing statuses from the IRS here.)

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Bad math

Taking a moment to double check the math on your forms could save you more headaches in the long run. The IRS caught more than 6 million math errors on tax returns in 2010, according to the most recent data available. Roughly half of those mistakes were due to errors on the now gone Making Work Pay Credit, a refundable credit offered in 2009 and 2010, but taxpayers commonly miscalculated how much they owed Uncle Sam, how much they could deduct and how big their refunds should be. Filing electronically with the help of online tax software could help you catch some of these errors, but taxpayers should also be sure they’re entering the right numbers into the correct boxes.

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Unsigned returns

Antifraud experts warn that taxpayers should never sign a return before a preparer has completed it, but not signing your return at all could cause it to be sent back. Married couples often forget that both spouses need to sign and date a return if they are filing jointly. E-filers can sign online using a personal identification number issued by the IRS. Request one at IRS.gov (www.irs.gov) using your Social Security number, name, birthday and mailing address.

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Incorrect adjusted gross income

Taxpayers filing electronically who don’t have the prior year’s personal identification number will need their adjusted gross income for 2011 to verify their identities with the IRS. Pull the AGI from the return you originally filed with the IRS. You should not use the AGI on an amended return (Form 1040X), even if the number was corrected by the IRS.

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Wrong bank account number

Using direct deposit can speed up your tax refund: The IRS issued 9 out of 10 refunds in less than 21 days last year, and expects to do the same this year. In contrast, taxpayers can’t check the status of their refunds for at least four weeks when they file by paper. If you are using direct deposit, take care to provide the right account number and routing number. Track your refund at IRS.gov. www.irs.gov

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Missed deadline

If you need more time to get your paperwork in order, you can request an extension by filing Form 4868 electronically or by paper. Most taxpayers can qualify for an automatic six-month extension, and if they’re out of the country, can get an additional two months to file without even asking for it. But while getting an extension will help you avoid late-filing penalties, payments are still due April 15. If you owe, consider paying by debit card or credit card.

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